It sounds like a Porsche takeover — err — they're German automakers, so maybe that should read "merger of equals" — of VW looks to become an almost certain thing as we're hearing the European Court of Justice in Luxembourg is expected today to strike down the so-called Volkswagen Law, a statute devised by the German government to protect the auto giant from an unwanted takeover. This will finally allow Porsche's chairman, Wendelin Wiedeking, to fulfill his declaration of intent for Volkswagen to rival the super best number one awesome automaker from the rising sun, Toyota. So we guess the underpants gnomes Wiedeking's three-step plan to profit rivaling Toyota is:
Step One: Buy VW
Step Two: ???
Step Three: Rival Toyota
We're sure they'll let us know what "Step Two" is at some point. [via New York Times]














Comments
I'm still trying to find out if this is a good thing or a bad thing. I mean, I really, really like Porsches. But I have to say that, on the whole, VWs tend to leave me with kind of a bland feeling. Then again, so do Toyotas and look where they are right now. Maybe VW/Porsche does know what it's doing.
Isn't this more like, uh, a reunification? Doc Porsche DID conjure up the Beetle, after all.
I'm still trying to figure outif this is a good thing or a bad thing. I mean, I really, really hate Porsches. But I have to say that most Audis and Lambos give me a special feeling where my wife says my lady parts should be. Then again, maybe the acquisition will cause the 911 to be more like the R8. Maybe VW/Porsche does know what it's doing.
VW has neither the quality, design nor dealer network to rival Toyota, they're nothing more than an opportunistic importer to the US Market anyways, and (for now) it's still the largest and richest market to get in.
Let's see...Porsche hired Toyota to assist in Japanese production methods. Toyota is assisting Porshce with Hybrid technology. Maybe 'Step Two' is to hire Toyota to teach them how to rival Toyota!
@thebullfrog:
Like Porsche designing the motor for Ford Mondeo/Contour, Dr. Porsche designed the Beetle.
And then he used those Beetle parts in the 356.
The Cayanne / Tourag continues that tradition.
Mabye the next Beetle will have a flat-6 out back?
@takacedon: The design? VW may be bland, but Toyota is über-bland.
Step Two: Invade Poland.
This makes me nervous; I hope Porsche isn't biting off more than it can chew...
@no_slushbox: FTW
@no_slushbox: Thanks man. Everyone at work wants to know what the hell I'm reading now.
On an aside, Porsche influence in VW has always been strong, so strong. Piech, arch-overlord of the VW group is Ferry Porsche's, er, nephew. VW group are, of course, making cars with Porsche input to rival, er, Porsches. The entire situation is more than a little incestuous, and makes me feel queasy sometimes.
German Reunification, Part II
I think the new Scirocco will make a wonderful new entry level Porsche.
As long as they don't try to march east to simultaneously invade Russia, all should be well.
@respawn: @Andrewpetty: You two are reminding me of Bizarro world with these comments.
Looks like a German automotive anschluss.
@takacedon: Do you own a VW? or a Toyota? I've got both, and there's no way in hell my Camry rivals my GTI or my Jetta (both MKV) in terms of design and with the new "crunching styrophome" sound coming from the steering column, I'm begining to wonder about quality. But design? Seriously?
That said, this news is great. Porsche has prooven if anyone aside from Toyota know how to run a car company, it's Porsche
I think of this as Porsches revenge for the 914 ([en.wikipedia.org]) and the 924 [en.wikipedia.org] Both of which were R&D'ed for VW only to have them bail at the last moment. Leaving Porsche to try and recoup the losses by selling them. I liked the 914 but the 924 and it's iterants (928, 944, 964(?))were the biggest peices of shite ever to come from Zuffenhausen.
We should remember Porsche is th emos tprofitable car maker in the world. I read they make something on the order of $25,000 in profit on every 911 sold!! Even Toyoyo could learn something there.
Porsche is protecting itself by doing this. They are profitable but small. They are vulnerable to a takeover. Ford did wonders for Jaguar's legacy didn't they?
Porsche wants to remain Porsche and they can do that within the protection of a large corporation which they control.
BTY, any car makers in Czechoslovakia?
@CEman: They are the most profitable automaker, but a very large portion of their overall profits actually come from the dividends from their VW holdings. We'll just see what happens, I guess.
@no_slushbox: Hahaha. I said the same thing to some of my friends earlier in the year when a discussion of the VW law came up.
If this means a VW/Porsche 914, then Yay! otherwise, yawn.
Ich, für eins, begrüßen unsere neuen Porsche überlords.
@CEman: I'm 99.99999% sure the 928 had a dedicated platform, and was designed as a Porsche from the outset.
And seriously, if VW=bland, then Toyota=automotive equivalent of Lunesta. But that strategy has certainly worked for ToMoCo lately, hasn't it?
The last thing Porsche wants to do is take over VW. It wants only to hold enough stock to block anyone else from making a bid, and so safeguard its supply chain.
This ruling may compel Porsche to make a formal bid for VW; but it will be a derisory offer below market value.
@takacedon: Volkswagen is currently the 4th largest automaker in the world in terms of sales. I'd hardly summarize them as an opportunistic non-player, even in the US. The US auto market is declining right now, not expanding and 2007 is expected to have the lowest sales in about a decade at a projected 16.4 million units.
On the flipside of that, after several years of decline German brands are increasing both their market share and sales volume in the US and this is certainly true for VW. Sales in Europe are increasing and hit 15.5 million units last year and that number is expected to be larger this year. With Eastern European economies growing, you can expect European car sales will continue to climb for at least a decade.
It wouldn't surprise me if Europe pulled even with the US in less than a decade in terms of the auto market.
[www.ita.doc.gov]
Step Two: Re-think Step One.
@lascauxcaveman: You work for VW? Err, (ehem), entschuldigung...Arbeit du für VW?
Lets hope Porsche unleash their Fast, and VW keep going UP UP UP. Ja.
Step Two: Make cars that aren't pieces of shit.
@HAMSLAMM:
Porsche doesn't need protection, it is 100% controlled by the Porsche family. Porsche can however profit a lot by splitting R&D costs with VW.
I always thought Porsche-VW-Audi were the same company in one form or another.
They share so many parts and engineering that I assumed we were looking at the German Cadillac-Buick-Chevy
(gasp! did he just compare Ze Germans to The 'Muricans?)
Didn't know there was no official ownership connection until now.
The reason Porsche did this was to get the German local government out of their hair. They owned a huge voting stake in VW and even though it was essentially controlled by Porsche, the German government had a voting stake in the company and prevented them from closing factories, cutting jobs, etc. VW has way too many factories and now they can finally reorganize.
@MAD_SCIENCE
For a brief look into the history of Volkswagen, have a look at those two articles:
VW part 1: [www.thetruthaboutcars.com]
VW part 2: [www.thetruthaboutcars.com]
@no_slushbox:
Beat me to the joke.
Next, they annex the sudetenland.
@TomAnderson: I believe it was a advance on the front engine rear drive platform started by the 924. They were most defintely different cars, but come from the same core.
Your spot on about the Toyoyo-Lunesta point.
@CEman: Not to get all pissy on the details, but as mentioned above the 928 had NOTHING to do with the 4-cyl vehicle lineage, and the 964 was the 911 generation just before the 993. You must be thinking of the 968, all of which were much better cars than the 914/924. A 3.0L 4-banger, for cryin' out loud!
Have you ever driven a 928? It's not the overweight pig that it's made out to be. Man, I'm starting to feel like I'm in the JFG vote-out all over again, defending the 928 and all.
@no_slushbox: Does FSO still exist?
@Hamslamm: Check it out...Škoda's still there building old Jettas, romance novel cover models, & hairsuit, err, hirsute SUVs.
BTW, no Czechloslovakia...just the Czech Republic now...
@hwyengr: I'll be right here defending it with you. 928 rocks so does the 944 and so does the 968. 924 not so much. I briefly drove a black 944 Turbo and I've never cried so hard until I had to give up the keys. It's the car that cemented me as a car fanatic. It was a religious experience.
But about this post; Porsche is gonna make VW's now? This is good how?
Czechoslovakia's auto industry has nothing to worry about with the large unified German corporation.
the Czechs should have no worries about a large unified group of Germans...
The operative business of Porsche is now a wholly owned subsidiary called "Dr. Ing. h.c. F.Porsche AG" within the new company Porsche Automobil Holding SE.
Wiedeking stressed that "We will not integrate the Porsche and Volkswagen enterprises into a network organization. Not only is this no wedding made in heaven; we aren't even getting married on earth."
Which VW-umbrella cars get killed out of spite first? My guess is the R8 and the Gallardo. No one dares challenge the 911! No vun!
I really really hope this means that the Cayenne is killed off.
If/when the takeover happens, Porsche needs to go back to making JUST sportscars. Let Audi be the more general sport/lux brand.
Well, VW has let quality slide with shoddy build quality coming from their Mexico plants. They option up their compact cars so that they cost more than many similarly equipped japanese midsized autos. The Service departments need a good solid boot to the backside to get them off their high-horses and get them back to learning how to actually fix the cars rather than simply blaming the owners.
VW can make good cars, but the price needs to drop, quality needs to rise, and accountability needs to be... present.
@MarkVictorArnold: Hahahahahahahahha..... PANAMERA!!
Yeah, @hwyengr: I have. I have also been involved with the nightmare that is CYLINDER WEAR!! 928's were Frigging Hot!! Until they got some wear, then they puked coolant everywhere! Then they were REALLY HOT!
Did ya ever see the 1000 pound Porsche Top Gear episode? I was laughing hardest at Jeremy Clarkson with his 928 cause I so understood.
I love practically everything Porsche has ever produced. I still think the shape of the 928 is one of the best GT shapes to come from Europe in decades. Just kinda wished the 928 got the same R&D the 911 got that is all.
As I get older, I go back to my 'roots'. I learned to drive in a VW dune buggy and am still in love with the rear engined lines.
And thanks, I guess I had erased part of the memory of 968.